Status message

Natural disasters raise accounting, reporting implications

Companies affected somehow by recent natural disasters, like hurricanes in the Atlantic and gulf regions, may need to consider the effects on their accounting, financial reporting, and tax compliance.

PwC published an alert to clients to call out a number of potential implications that companies need to consider, like whether a given company needs to expand its disclosures or consider writing down asset values. The firm says the Securities and Exchange Commission historically has asked companies to consider disclosures related to the effects of natural disasters.

In the wake of Hurricane Sandy in 2012, for example, the SEC asked companies to expand their disclosures “to quantify the effect of the natural disaster on their current period operations, expected future period results and their supply chain,” says PwC. If companies are... To get the full story, subscribe now.